Wachovia Corporation is a diversified financial services holding company based in North Carolina and is one of the largest providers of financial services in the United States. Its services are provided through more than 40 offices around the world. Based on total assets owned, Wachovia Corporation is currently believed to be the 4th largest bank holding company in the US.
As at November 2008, of particular interest is the planned acquisition/merger of Wachovia by Wells Fargo.
The History of Wachovia Corporation
The Wachovia Corporation that exists today was initially created by the merger of the Legacy Wachovia Corporation and First Union Corporation: at this time First Union took on the Wachovia name.
In 1879 the Wachovia National Bank was established in North Carolina. In 1911 it merged with Wachovia Loan and Trust in Winston-Salem. In 1986 Wachovia purchased First Atlanta. In 1998 Wachovia acquired Jefferson National Bank and Central Fidelity Bank both based in Virginia. It entered into Florida through the purchase of 1st United Bancorp and American Bankshares Inc. Its final purchase was to be the Republic Security Bank in 2000.
The First Union Corporation?
First Union Corporation began as Union National Bank. In 1958 the bank merged with First National Bank and Trust Company of Ashville and became as a result First Union National Bank of North Carolina. Following on from this, First Union purchased over 80 banks before buying Wachovia. Significant other purchases included:
- Corestates Financial Corporation in 1998
- The Money Store 1998.
Merger of First Union and Wachovia
In September 2001 First Union and Wachovia merged to become the new Wachovia Corporation.
In 2000 Wachovia became a credible acquisition candidate after running into problems with credit quality and earnings. Having believed SunTrust to be the most likely to purchase Wachovia, analysts were seemingly surprised to see First Union in the driving seat. Within the deal First Union were to assume the name Wachovia thus providing First Union with a new identity while at the same time allowing Wachovia’s name and corporate identity to survive.
The First Union Take over of Wachovia was not to be entirely easy as in may 2001 the Atlanta based SunTrust announced a rival takeover bid. It was not until August of that same year that the Wachovia shareholders approved the deal from First Union thus rejecting that of SunTrust.
Wachovia Corporation Acquisitions Since 2001
- July 2003 – Prudential Securities
- October 2003 – Metropolitan West Securities
- November 2004 – South Trust
- March 2006 – Westcorp
- October 2006 – Golden West Financial Corporation
- October 2007 – A.G. Edwards
Wachovia Personal Finance and Business Services
Wachovia offers numerous financial and commercial services such as:
- Online Services - on-line Banking with bill pay, mobile banking, online brokerage.
- Retirement planning.
- Investing.
- Insurance – life, auto, home and health.
- Banking – checking, savings and CD’s, credit cards and check cards.
- Lending – mortgages, home equity, education loans and auto Loans.
- Wealth management.
- Small business.
- Corporate and Institutional – corporate and Investment banking, commercial banking and cash management.